Benefits beckon from mainland pact
Planned tax arrangements between Hong Kong and the mainland should boost the SAR's attractiveness as a regional headquarters for foreign companies, according to tax advisers for management consultants Price Waterhouse.
The avoidance of double taxation arrangements would also ease concerns of Hong Kong businesses operating in the mainland and lower the tax liability of local residents who made frequent working trips to the mainland, they said.
Tax partner Petrina Tam Yuk-lai believes proposals to exchange information with mainland tax authorities would not breach secrecy provisions.
Ms Tam said: 'Our guess is that if there is no specific clause for exchange then secrecy should still prevail.' Senior tax manager Spencer Chong said: 'The double tax arrangement definitely would not have an adverse impact - if not a positive one - for any individuals.' Mr Chong said the extent of the benefits would vary according to individual circumstances.